Question: What do courts ask to determine whether a provision is for liquidated damages or a penalty? When the contract was entered into, was it apparent

What do courts ask to determine whether a provision is for liquidated damages or a penalty?

When the contract was entered into, was it apparent that damages would be difficult to estimate in the event of a breach?

Did the parties characterize the provision as a liquidated damages provision?

When the contract was entered into, was it apparent that damages would be difficult to estimate in the event of a breach, and was the amount set as damages a reasonable estimate and not excessive?

Was the amount set as damages a reasonable estimate and not excessive?

What do courts ask to determine whether a provision is for

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